The default rate of first and second lien mortgages edged up in December, according to data from S&P Dow Jones Indices and Experian.
The latest S&P/Experian Consumer Credit Default Indices show that the first mortgage default rate was up slightly from 0.28% to 0.29% in December. The bank card default rate also saw a month-over-month increase of seven basis points to 2.63%. Meanwhile, the composite rate held steady at 0.46%, and the auto loan rate remained unchanged at 0.64%.
Of the five major metropolitan statistical areas (MSAs), two posted lower default rates in December. Los Angeles and Chicago each dropped two basis points to 0.35% and 0.52% respectively. Dallas and Miami were both unchanged, at 0.56% and 0.86% respectively. New York was the only outlier, with its default rates up one basis point to 0.42%.
The indices are designed to track the default experience of consumer balances in four key loan categories: auto, bankcard, first mortgage lien and second mortgage lien. The Indices are calculated based on data extracted from Experian’s consumer credit database, which includes several bank and mortgage company contributors, and covers approximately $11 trillion in outstanding loans sourced from 11,500 lenders.